The hard drive market has long been on a path of specialization, with drives of this type concentrating on server systems and consumer devices increasingly migrating to solid state drives. In order to meet the demand in the region, Toshiba is ready to organize the production in China of hard drive models aimed at use in server systems.
The thing is, as the publication explains Nikkei Asian Reviewthat Toshiba now only manufactures such hard drives in the Philippines, although it also has consumer drive production in China. According to the source, the new production in China will be organized with the participation of TDK, which already has production lines in Guangdong. The first samples of finished products will roll off the new company’s line in June, and mass production will begin in July.
Toshiba intends to double production of hard drives for data centers between the 2020 and 2025 financial years. Localizing production in China will reduce costs and lead times for key customers who are closer to mainland China than the Philippines. By 2025, Toshiba also expects to increase its own market share from 17% to 24% in the most modest version of the forecast. Hard drives still offer a sevenfold advantage in terms of storage costs compared to solid state drives. Demand for them from data center designers will continue to grow.